Craig tells Rosanna to live up to her end of the deal and give him back Montgomery Enterprises. Rosanna points out that Meg didn't seem overjoyed at the pregnancy news but Craig stays on point by saying he lived up to his end of the bargain so she should live up to hers. Ro says Meg may not want to raise the child with Craig! He is certain that Meg is tied to him forever now and tells Rosanna so. She isn't so sure. Craig goes back to the lawsuit issue and tells Rosanna to call her lawyers - now! Ro says he won't get Montgomery back until she is happily married and Meg has given birth! "If you don't drop this lawsuit your marriage is at serious risk," he says and tells her that he'll tell Paul everything about their deal if she doesn't give him back his company. Craig walks away. Rosanna isn't sure what to do but finally picks up her phone and calls her lawyers to drop the lawsuit.

Craig tracks Meg down in Old Town and finds her crying. She makes up a story about the client she met with; he wonders why she is crying and she blames pregnancy hormones. He asks her to tell him the real reason and she is honest with him. "It was Paul," she says! Meg tells him that Paul found her and pointed out all of Craig's past mistakes. He swears he is a changed man and asks her to come home with him. They go to the diner to have dinner. Craig orders her a huge meal that doesn't appeal to Meg. He tells Meg that the lawyers called and told him that the lawsuit has been dropped. Meg wonders if he pressured Rosanna! Craig says he talked to Rosanna and that she offered to give the company back. Meg still isn't sure. Craig asks if Meg is having second thoughts about having his child. Meg remembers what Paul said and says she wants to be committed to Craig. He takes her hand, promising to be a devoted husband and father to their child.

Craig spots Paul and says he just stopped in. Rosanna tells Paul that she was just having a drink with Craig to get him out of Fairwinds faster! Paul angrily asks why Craig is there. Craig tells him that he was hoping that since Ro is now happy, he was hoping she would drop the lawsuit. Ro tells him she won't. Paul tells Craig to stay away. Craig leaves. Rosanna catches Paul about to make a call and he hangs up quickly. He asks her to sit down so they can talk and she begins chattering on about wedding plans. When he doesn't say anything Rosanna gets quiet. She brings up Craig, telling Paul that now that Craig knows she won't drop the lawsuits he'll stay away.

Craig returns, finds the paper and the test in the trash and gets very excited. He calls Meg but she doesn't answer so he leaves a message asking her to meet him in the lounge at The Lakeview. Then he calls Rosanna to give her the good news. He asks her to be at The Lakeview - with Paul - in an hour. Paul returns and Rosanna tells him they have a meeting with the wedding planner in an hour. He begs off. Rosanna begs him to come along and he finally gives in.

Meg arrives at The Lakeview and Craig makes a toast loud enough for everyone in the room to hear, including the newly arrived Rosanna and Paul, about their pregnancy. He calls for a round of champagne. Rosanna and Paul hurry off. Meg turns on Craig, telling him it is too early to make such an announcement and asking why he had to tell everyone so soon. Craig apologizes, telling Meg that he just had to celebrate. In the hall, Paul tells Rosanna that he can't stand that Paul is having a child, any child. Rosanna points out that Meg will be a great mom. Paul asks about the wedding consultant and Rosanna leaves. Paul sends Meg a text message to meet him right away. Craig returns and Meg makes up a story about meeting a private duty patient. He doesn't like the idea but she insists that it will be good for her - and the baby! Meg leaves. Rosanna returns to Paul and tells him the planner has been held up. He leaves to go home. Rosanna heads in to the lounge. Craig tells Rosanna to stick by their arrangement - and give him back Montgomery Enterprises!

Meg is eagerly awaiting Paul's arrival when Craig walks up, surprising her. He wants to know what she is doing there. Meg gets angry, thinking that Craig followed her there. He says he was just driving by and was worried about her; she apologizes and tells him she was just trying to get some space so she could think. He asks her to return to town with him and she agrees.

Paul is wandering around the woods looking for Meg when Rosanna calls. He doesn't answer because just then Meg walks up! She asks how long he can stay and tells him she is still in love with him! Paul is quiet for a minute and then asks if she has told Craig yet. He gets angry and points out the fact that Rosanna is waiting at home for him. He asks how she can sleep with Craig and be in love with him; Meg turns his words back on him, reminding him that he's slept with Rosanna and declared his love for Rosanna many times over. She finally gets him to admit that he is in love with her and wants to make a life with her. They kiss! Meg tells Paul they have to tell Craig and Rosanna - now! Paul hesitates. He says he can't go with Meg because he can't dump Rosanna! Paul brings up Carly's illness, Rosanna's lawsuits against Craig and tells Meg that he can't leave her alone right now. Meg tells him that Rosanna is perfectly able to stand on her own two feet but Paul ignores her. "If you keep lying to her you're going to hurt her more than Craig ever did," Meg says. Paul starts thinking about Rosanna but isn't sure he can break her heart. Meg tells him it is the only thing he can do. Paul tells her that he loves her and they kiss. He says he has to take things slowly with Rosanna and leaves.

Meg listens as Paul declares his love for Rosanna and she declares her love for him. Craig walks up, catching Meg eavesdropping! Seeing that she is upset, Craig tells Meg that he loves her and that Paul will never understand her the way he does. Meg walks away and he follows. Outside, Craig puts his jacket over Meg's shoulders. He flirts with her, telling her how great she looks from behind in high heels. Meg wonders why he isn't more mad at her. They sit down and Craig tells her that he loves her and he understands how she still feels about Paul and Rosanna being together. Meg isn't sure whether to believe him. He suggests Meg take a walk or shop while he makes a quick business call and that they meet back at their hotel room in a half-hour for movies and whatever else they can think of.

Back in the lounge, Barbara decides they need a little girl-time and tells Paul he needs to get lost! She goes to the ladies room to freshen up before they leave. Once alone, Paul asks Rosanna if she can deal with his mother. Ro obviously isn't sure but decides Barbara is just being a mother. Paul can't keep his mind on Rosanna and flashes back to making love with Meg! On their way out of The Lakeview, Barbara and Rosanna run into Craig. He asks if he can see Rosanna in private and she convinces Barbara to go on ahead. Alone, Craig tells Rosanna she is doing a great job of keeping Paul distracted and away from Meg. Rosanna asks Craig how the pregnancy plans are coming along and tells him to keep working - hard! - because she won't turn over Montgomery Enterprises until Meg is wearing maternity clothes. She walks away.

Meg arrives at the hotel room to find Craig waiting. He asks her to model her new outfit. She does. Meg walks out of the bath wearing the new negligee, kisses Craig and pulls him on to the bed. She can't get Paul out of her mind, though, and pulls away from him! Craig is understanding and kisses her on the shoulder. She waits until he is asleep and then leaves the hotel room. In the lobby she sends a text message to Paul, asking him to meet her at the lake tomorrow! Paul gets the message and throws his phone against the sofa.